The Truth about Leasing a Car and “Hidden” Costs
When motorists are in the market for a new vehicle, many will consider leasing the car instead of purchasing but then changing their mind at the last minute. The reason for this is that some motorists fear hidden or unexpected costs through leasing and are intimidated by the process. So, it is worth taking a look at and whether or not these fees actually exist.
Typically, you will end up paying more than the vehicle is listed as. However, the additional costs are usually not “hidden” and instead fully transparent. Therefore, it is important to keep in mind that there will be extra costs when shopping for deals. The extra costs are often comprised of a deposit (the higher you pay, the less the monthly costs) and administration fees. These administration fees are often what take people by surprise the most. The reason for these fees is that the broker will take care of all the paperwork (which can be a lot). Often, the listed price will not include VAT also.
There may also be other optional costs involved, but again these should never be “hidden”. These include mileage overrun costs, vehicle return fees, early termination fees and various protection products such as maintenance plans and key replacement. These fees can add up, but even with these extra costs you should find that leasing is a much more affordable way of driving your favorite vehicles. You also have the benefit of not being tied down long term and not having to worry about depreciation.
Getting Full Transparency
The most important thing to do when leasing is to go to a reputable dealership. Take for example, they will be fully transparent with their costs and also provide the best deals. Provided that you do not expect to pay the initial payment figure, which is advertised first, as this is the fee without the additional costs, you will find yourself driving away in your dream car and with a great deal.
These “brokers” negotiate with the larger car leasing firms to get personal and business rates on smaller scale. Selling 1 or 2 cars to lots of customers instead of rolling out an entire fleet to just a handful of customers. Therefore, they charge a finders fee for their service, typically ranges from £100 to £400 depending on the car and the broker.
Leasing a car is a fantastic option for those that want to drive the latest cars but cannot afford to buy outright. Some motorists are deterred by what people believe to be hidden costs, but these costs are not hidden when you go to reputable suppliers. You will not be paying exactly the advertised price, but the extra costs included will all be detailed and this should ensure for no nasty surprises.